5. (1) Where a planholder has entered into a written agreement to purchase an eligible home that will be a qualifying eligible home described in subsection (4) and requests release from the planholder’s Ontario home ownership savings plan of assets of the plan to be applied towards the purchase price of the eligible home, the following rules apply: 1. The planholder shall designate a solicitor for the purposes of this Act in the prescribed manner. 2. The planholder shall make application to the depositary of the Ontario home ownership savings plan in the prescribed manner and in the form approved by the Minister for release of the assets of the plan. 3. The depositary shall release, not earlier than thirty days before the date set out in the agreement of purchase and sale as the date of closing of the purchase of the eligible home, the assets of the plan as trust property to the solicitor designated by the planholder. 4. The solicitor designated by the planholder shall hold the assets of the plan released by the depositary separate and apart from the solicitor’s own money, assets and estate, in trust for the benefit of the planholder and Her Majesty in right of Ontario, jointly, and shall deal with the trust property only as provided in paragraph 5 or 6, as applicable. 5. In the event that, i. the agreement of purchase and sale of the eligible home is not completed within the prescribed time after release by the depositary of the assets of the plan to the solicitor in trust, ii. the solicitor declines to accept receipt of the assets of the plan in trust, or declines to assume or fulfil the duties required of the solicitor under this Act, or iii. the solicitor declines to or ceases to represent the planholder in the purchase by the planholder of the eligible home, the solicitor shall forthwith remit the entire assets of the plan to the depositary in the prescribed manner. 6. Where the agreement of purchase and sale of the eligible home is completed within the prescribed time, the solicitor may release the assets of the plan to the vendor under the agreement of purchase and sale or to the planholder as part or all of the consideration payable by the planholder for the purchase of the eligible home. 7. Upon completion of the purchase of the eligible home by the planholder and the disbursement by the solicitor of the assets of the plan, the solicitor shall file with the Minister proof acceptable to the Minister of the completion of the purchase of the eligible home and the fulfilment by the solicitor of his or her duties under this Act.  R.S.O. 1990, c. O.20, s. 5 (1); 1997, c. 19, s. 18 (1, 2). Idem (2) For the purposes of paragraph 1 of section 2, no payment shall be deemed to have been made by a depositary of an Ontario home ownership savings plan to a solicitor where the solicitor has remitted the assets of the plan received from the depositary to the depositary under paragraph 5 of subsection (1).  R.S.O. 1990, c. O.20, s. 5 (2). Release of Crown’s interest (3) The interest of Her Majesty in right of Ontario in the assets of the plan shall be deemed to be released only where the solicitor has paid over the assets of the plan in accordance with paragraph 6 of subsection (1) on the purchase by the planholder of an eligible home that will be a qualifying eligible home.  R.S.O. 1990, c. O.20, s. 5 (3). Qualifying eligible home defined (4) For the purposes of this Act, an eligible home is a qualifying eligible home only where, (a) the eligible home is located in Ontario and is suitable for use as a year-round dwelling place or, in the case of an eligible home that is in the form of a share or shares in the capital stock of a co-operative corporation or is described in clause 1 (2) (h), the housing unit is located in Ontario and is suitable for use as a year-round dwelling place; (b) the eligible home is the first eligible home anywhere owned, jointly with another person or otherwise, by the planholder; and (c) the eligible home is acquired as the principal residence of the planholder to be ordinarily inhabited by the planholder or by the planholder’s spouse or common-law partner or an individual who was the planholder’s spouse or common-law partner at the time of acquisition by the planholder of the eligible home, or by both of them, for a period of at least 30 consecutive days within two years of the first day of ownership by the planholder.  R.S.O. 1990, c. O.20, s. 5 (4); 1997, c. 24, s. 217; 2000, c. 42, s. 89 (1). Minister’s discretion to release (5) Where the assets of the plan have not been released under subsection (1), the Minister may, in the circumstances described in subsection (6), (a) consent to the release of the assets of the plan by the depositary to the planholder; (b) direct that on the release of the assets of the plan, no amount, or an amount not in excess of the amount that would otherwise be deducted, withheld and remitted to the Minister by the depositary of the plan under subsection 9 (3) shall be remitted to the Minister; and (c) impose such conditions on the release as the Minister in his or her discretion considers necessary to ensure compliance with this Act and the regulations.  R.S.O. 1990, c. O.20, s. 5 (5). When Minister’s discretion may be exercised (6) The Minister may exercise his or her discretion under subsection (5) if the Minister is satisfied that, (a) the planholder has purchased property that is or that will become a qualifying eligible home under subsection (4); (b) the planholder has entered into an agreement to purchase a proposed condominium unit that will become a qualifying eligible home and is required under the agreement to take possession of or occupy the proposed condominium unit before a deed or transfer of the unit acceptable for registration is delivered to the planholder; (c) the planholder has entered into an agreement to purchase an eligible home, the construction of which has not yet been completed, and the Minister is satisfied that the planholder is required under the terms of the agreement to make interim payments to the builder or developer of the eligible home before completion of the purchase thereof; (d) the planholder or the spouse or common-law partner of the planholder with whom the planholder resides, or from whom the planholder lives separate and apart for reasons other than the breakdown of the marriage or common-law partnership, has acquired, after the planholder has entered into an Ontario home ownership savings plan, an ownership interest in an eligible home by gift from the owner of the interest or by reason of the death of the owner of the interest; or (e)   the planholder, after having entered into an Ontario home ownership savings plan, has married a person who had an ownership interest in an eligible home at the time of the marriage or has entered into a common-law partnership with a person who had an ownership interest in an eligible home at the time the common-law partnership was entered into.  R.S.O. 1990, c. O.20, s. 5 (6); 2000, c. 42, s. 89 (2). Refund (7) Where an amount has been deducted, withheld and remitted under subsection (5), the Minister may refund the amount to the planholder, together with interest on the amount at the prescribed rate, where the Minister is satisfied that the property purchased by the planholder is or will be a qualifying eligible home under subsection (4).  R.S.O. 1990, c. O.20, s. 5 (7). Proposed condominium unit (8) For the purposes of subsection 12 (1), where the assets of an Ontario home ownership savings plan have been released under subsection (5) to a planholder who has entered into an agreement to purchase a proposed condominium unit, the planholder shall be deemed to have acquired ownership of the proposed condominium unit and the proposed condominium unit shall be deemed to be an eligible home on the date the planholder is entitled to immediate vacant possession of the proposed condominium unit.  R.S.O. 1990, c. O.20, s. 5 (8). Eligible home under construction (9) Where the assets of an Ontario home ownership savings plan have been released under subsection (5) to a planholder referred to in clause (6) (c) or to a planholder who owns property that will contain a qualifying eligible property following completion of construction thereon of an eligible home, the following rules apply: 1. The planholder shall be deemed to have acquired ownership of the eligible home on the date the assets of the plan were released, whether or not construction of the eligible home was completed. 2. If construction of the eligible home has been delayed and, as a result, the planholder has failed to acquire a qualifying eligible home within a time limit imposed by this Act, the planholder shall not be considered, for the purposes of subsection 12 (1), to have used the assets of the plan for a purpose other than the purchase of a qualifying eligible home, if the Minister is satisfied that, i. any failure to inhabit the eligible home for at least thirty days within two years of the date the assets of the plan were released was due to the delay in the construction of the eligible home, ii. the delay in the construction was for a prescribed reason that was beyond the control of the planholder and of anyone not dealing at arm’s length with the planholder within the meaning of section 25l of the Income Tax Act
(Canada), and iii. the planholder has acquired, within four years of the date the assets of the plan were released, an eligible home that is a qualifying eligible home within the meaning of subsection (4).  R.S.O. 1990, c. O.20, s. 5 (9).